The Biggest Loser in a GM Collapse: Uncle Sam

The last thing the PBGC needs is to take on the auto maker's retirement obligations.

THERE'S MORE TO THE OBAMA ADMINISTRATION'S aggressive actions to shake up General Motors (ticker: GM) than the obvious aims of preserving jobs and the U.S. automobile industry.

Washington realizes that if the biggest of the Detroit Three were to succumb, it would be on the hook for the pension obligations of GM employees and retirees. And the federal Pension Benefit Guaranty Corp. is in no shape to shoulder that burden.